There are big payroll tax changes coming in 2017 as a result of the tax extenders bill, Protecting Americans from Tax Hikes (PATH) Act of 2015:
- Earlier deadline for filing information returns – requires Forms W-2, W-3 and 1099 forms to be filed on or before January 31 of the year following the calendar year to which such returns relate, regardless of whether the forms are filed on paper or electronically. Please note the following due dates:
|Form:||2015 Filing Due:||2016 Filing Due:|
|Paper filed Forms W-2, W-3 and 1099s||February 29, 2016||January 31, 2017|
|electronically Filed Forms W-2, W3 and 1099s||March 31, 2016||January 31, 2017|
- Safe harbor from penalties for de minimis errors – issuers of information returns and payee statements will not be subject to penalties for failure to file correct information returns and failure to furnish correct payee statements if the error was $100 or less ($25 or less for errors involving tax withholding). Effective for returns and statements filed after December 31, 2016.
- Truncated social security numbers on W-2 forms – will require the employer to use an “identifying number” for each employee rather than an employee’s social security number.
If you have questions on your company's responsibility in processing informational returns or other payroll related returns, please feel free to contact one of our CPAs at (616) 642-9467 or request a complimentary accounting consultation.